A constant marginal rate of substitution between two goods implies
A)the goods are perfect complements.
B)the goods are imperfect substitutes.
C)the goods are both inferior.
D)one good is normal and one good is inferior.
E)the goods are perfect substitutes.

Question

Quizplus · Accepted Answer

A constant marginal rate of substitution between two goods implies that the consumer is willing to substitute the goods at a constant rate, indicating that the goods are perfect substitutes.

A Constant Marginal Rate of Substitution Between Two Goods Implies